Gmail as a marketplace: Google tests shopping directly in email ads

Google has been earning billions from advertising in its services for decades (Google Search, YouTube etc.) and third-party sites. Now, the company wants to expand the list of advertising platforms and bring the purchase of goods directly to the email inbox. If the test of the new format is successful, the «Promotions» tab in Gmail may turn into a full-fledged online shopping platform.

Advertising directly in email: how it works

According to Search Engine LandGoogle is already testing a new format of interactive advertising in Gmail. We’re talking about the «Promotions» tab, which most users ignore or skim through when looking for discounts and bonuses from brands. Now this tab can become a showcase for shopping.

The new format includes visual blocks with products that contain:

• product images,
• brand name,
• prices,
• star rating,
• tags like «Free shipping».

Once clicked, the ad expands into a carousel of products that can be viewed without clicking through to other sites. This turns the marketing email tab into a simplified shopping platform similar to Google Shopping, but right in your inbox.

The test version, for example, features the robot vacuum cleaner brands iRobot and Wybot, which showcase their products in a small gallery — right in the email window. This approach allows the user to familiarize themselves with the assortment without leaving Gmail.

Impact on users and business

For online retailers, this can become another effective channel for direct contact with customers, without the need to lead them to the site or wait for a banner click. Companies will be able to combine visually appealing advertising with interest-based targeting, which has long been a Google advantage.

However, not everyone will like this innovation. Users who are used to perceiving Gmail as a personal space for correspondence may not be happy about another source of advertising noise. Especially if the ad units start to look too «clicked» and mix with other messages or take up a large area of the screen.

Nevertheless, the new format fits well into Google’s ecosystem, as the company has long been filtering advertising emails into the «Promotions» tab. Now it wants to make this tab more profitable and useful for sales.

What will happen next

If the test is successful, Google may expand the new ad format to other services, including YouTube and Google Discover, which already have Demand Gen campaigns focused on stimulating demand through visual ads.

Source: searchengineland, techradar